Calculate Current cash debt coverage ratio:
Financial statements for Delta Company are presented below:
Delta Company
Balance Sheet
December 31, 2012
Assets Liabilities & Stockholders' Equity
Cash $ 40,000 Accounts payable $ 20,000
Accounts receivable (trade) 35,000 Bonds payable 50,000
Buildings and equipment 150,000 Common stock 65,000
Accumulated depreciation- Retained earnings 60,000
buildings and equipment (50,000) $195,000
Patents 20,000
$195,000
Delta Company
Statement of Cash Flows
For the Year Ended December 31, 2012
Cash flows from operating activities
Net income $60,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Increase in accounts receivable (trade) $(16,000)
Increase in accounts payable 8,000
Depreciation-buildings and equipment 15,000
Gain on sale of equipment (6,000)
Amortization of patents 2,000 3,000
Net cash provided by operating activities 63,000
Cash flows from investing activities
Sale of equipment 12,000
Purchase of land (25,000)
Purchase of buildings and equipment (48,000)
Net cash used by investing activities (61,000)
Cash flows from financing activities
Payment of cash dividend (15,000)
Sale of bonds 30,000
Net cash provided by financing activities 15,000
Net increase in cash 17,000
Cash, January 1, 2012 23,000
Cash, December 31, 2012 $40,000
Additional Information: Selected accounted balances on Jan 1, 2012 were as follows:
Bonds Payable on Jan 1, 2012 $20,000
Total Assets on Jan 1, 2012 112,000
Number of common shares outstanding all year 30,000
Net Sales for 2012 $150,000
Instructions:
Calculate the following for Delta Company and show your work. (You may need to compute some of the numbers you need before you could calculate some of the ratios below).
a. Current cash debt coverage ratio
b. Cash debt coverage ratio
c. Free cash flow
d. Current ratio
e. Profit margin on sales
f. Payout Ratio
g. Debt to total assets
h. Rate of return on assets
i. Earnings per share
j. Asset turnover
k. Receivables turnover